HMRC: Staggered Start to the Introduction of Real Time Information Penalties

The new automatic in-year Pay As You Earn penalties was due to start from April 2014. These would have been for late filing and late payment and in-year interest, charged on tax and National Insurance Contributions paid late during the year.

Real Time Information (RTI) is a big change and HM Revenue and Customs and some employers are still learning about the new system & how it works in practice. Having listened to customer feedback HMRC has decided to stagger the start of the new in-year late filing and payment penalties to give employers more time to adapt to the new reporting requirements.

The new timetable will be:

April 2014: In-year interest on any in-year payments not made by the due date.

October 2014: Automatic in-year late filing penalties.

April 2015: Automatic in-year late payment penalties.

HMRC has stated that it will be continuing to improve its systems and guidance as the process continues to be implemented.

Universal Credit

HMRC has also advised that it is working closely with the Department for Work and Pensions to ensure that RTI will support the operation of Universal Credit, which will bring together means-tested in and out-of-work benefits.

HMRC’s Director General for Personal Tax, Ruth Owen, has commented as follows:

“The introduction of RTI is going extremely well for the majority of employers but there are still some who need a bit of time to adapt fully to the changes. This additional time will give us the opportunity to ensure that improvements to our internal systems are working, to learn from them and to provide better customer support to employers who need more time to adapt.”

Contact Tax Innovations about Real Time Information Penalties

If you are yet to consider all the ramifications of the switch to RTI, or if need an assistance of any kind, please contact our experienced payroll department to discuss your concerns. You can contact us on 01962 856 990 or email customerservice@taxinnovations.com.

As had been expected, the 2018 Spring Statement update did not include any major tax policy announcements; rather it provided a number of consultations that suggest potential legislative changes in the future. Read more about the areas set for exploration here.